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Sprott Resource Corp. Announces First Quarter 2009 Results

        - Appoints New Chief Financial Officer -        TORONTO, May 14 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or the  "Company") today announced its financial results for the three month period  ended March 31, 2009. The consolidated financial statements and related  management's discussion and analysis can be found on SEDAR (www.sedar.com) and  www.sprottresource.com.      "Our current conservative posture has enabled us to keep SRC's net asset  value stable in an extremely volatile stock market," said Kevin Bambrough,  President and CEO of Sprott Resource Corp. "We continue to focus on building  exposure to and long-term value in our three main investment themes -  agriculture, energy and precious metals."Business Highlights for Q1 2009:        -   On March 4th, SRC announced its intention to form One Earth Farms          with an initial investment of $27.5 million. Since then, SRC has          assembled an experienced project team and commenced seeding          operations of approximately 15,000 acres of farmland for 2009.        -   Waseca continued its land acquisition program in the Lloydminster          area of Saskatchewan. Total investment during the period was          approximately $940,000, resulting in the leasing of approximately          3,535 hectares of crown and freehold lands. Waseca's total land          position now stands at 7,249 hectares. Waseca continues to actively          evaluate potential opportunities to acquire additional prospective          land and production.        -   Stonegate Agricom remains focused on the agricultural nutrient          sector, and continues to advance the Mantaro Phosphate Project          through both local and regional geological study. In the quarter,          Stonegate Agricom conducted community relations, environmental and          administrative work in order to satisfy the requirements for a          Category I exploration permit. The permit was granted in April 2009.          Stonegate Agricom intends to complete its proposed exploration          program by the third quarter of 2009.        -   The Company's investment portfolio grew to $34.2 million as at          March 31, 2009 from $28.6 million as at December 31, 2008. The          portfolio is comprised of $18.3 million (53%) public securities and          $15.9 million (47%) in private company investments. The growth in the          public securities was the result of both net additional invested          capital of $4.9 million and an increase of $736 thousand in the          market value of the portfolio.        -   The Company continues to hold 40,475 ounces of gold bullion and          1.8 million ounces of silver bullion, which had a fair market value          of $76.2 million as at March 31, 2009, an increase of $8.1 million          from the fair market value as at December 31, 2008 and an increase of          $14.2 million from its cost amount.          Financial Highlights for Q1 2009:        -------------------------------------------------------------------------      Consolidated Income Statements          For the three months ended      -------------------------------------------------------------------------                                         Mar. 31,       Dec. 31,       Mar. 31,                                            2009           2008           2008      -------------------------------------------------------------------------      Net earnings (loss)            ($1,170,706)   $60,389,329      ($276,208)      EPS (basic)                         ($0.01)         $0.72         ($0.01)      EPS (fully diluted)                 ($0.01)         $0.72         ($0.01)      -------------------------------------------------------------------------      -------------------------------------------------------------------------          -------------------------------------------------------------------------      Consolidated Balance Sheets                             As at      -------------------------------------------------------------------------                                                  Mar. 31, 2009  Dec. 31, 2008      -------------------------------------------------------------------------      Cash, cash equivalents and short-term       investments                                 $176,244,457   $203,546,586      Gold & silver bullion (at cost)               $61,930,413    $61,930,413      Portfolio investments                         $34,205,951    $28,564,256      Total Assets                                 $295,930,310   $314,285,599      Total Liabilities                             $11,568,560    $29,529,309      Net assets (total assets minus total       liabilities)                                $284,361,749   $284,756,290      Net assets/share                                    $3.48          $3.48      -------------------------------------------------------------------------      -------------------------------------------------------------------------The net loss for the first quarter of 2009 was $1.17 million or ($0.01)  per basic share compared to a net loss of $0.28 million or ($0.01) per basic  share during the first quarter of 2008. The increase in net loss was primarily  due to an increase in general and administrative costs, which includes the  consolidation of Waseca's financial results, and the equity pick-up from  Stonegate Agricom's financial results.      General and administrative ("G&A") expenses for Q1 2009 increased to $3.2  million from $673,509 in Q1 2008 and decreased from $20.9 million in Q4 2008.  The year over year the increase is related to the increased management fee  payable or accrued to Sprott Consulting LP ("SCLP") as a result of the  increase in the Company's net asset value and to professional fees in managing  its subsidiaries including auditing, accounting, legal and tax services. The  decrease in G&A expenses from Q4 2008 is attributable primarily to the $17.5  million in Incentive Fee payable to SCLP during Q4 2008.      For Q1 2009, the Company's portfolio investments increased to $34.2  million compared to $28.6 million for Q4 2008. The growth is the result of an  unrealized gain of $735,981 and $4.9 million of net capital invested in the  public securities portfolio.      Working capital decreased during the first quarter 2009 to $238.8 million  from $246.2 million as at December 31, 2008. The decrease in working capital  is the result of the net purchase of portfolio investments and the purchase of  oil and gas properties and equipment for the Company's subsidiary, Waseca.      The Company's net assets remained relatively constant, with net assets of  $284.4 million or $3.48 per share at March 31, 2009 compared to $284.8 million  or $3.48 per share at December 31, 2008.      As at March 31, 2009, the Company had 81,807,229 common shares issued and  outstanding.        SRC Appoints New Chief Financial Officer        The Company appointed Steve Yuzpe, CFA, MBA to the position of Chief  Financial Officer replacing Steve Austin effective immediately. Mr. Yuzpe has  over 13 years of financial experience, including seven years as the CFO of  Points International Ltd., a TSX listed company. The Company would like to  thank Mr. Austin for his contribution over the last year.        About Sprott Resource Corp.        SRC is a Canadian based company, the primary purpose of which is to  invest, directly and indirectly, in natural resources. Through acquisitions,  joint ventures and other investments, SRC seeks to provide its shareholders  with exposure to the natural resource sector for the purposes of capital  appreciation and real wealth preservation. SRC is well positioned to draw upon  the considerable experience and expertise of both its Board of Directors and  Sprott Consulting Limited Partnership ("SCLP"), of which Sprott Asset  Management Inc. is the sole limited partner. Pursuant to a management services  agreement between SCLP and SRC, SCLP provides day-to-day business management  for SRC as well as other management and administrative services.        Forward Looking Statements        Certain statements contained herein may constitute "forward-looking  statements" under applicable securities laws. Some of the forward-looking  statements may be identified by words such as "expects", "anticipates",  "should", "believes", "plans", and similar expressions. These statements are  based on current estimates, factors and assumptions, including expectations  regarding the SRC's future strategy and business and the execution of its  existing plans. These statements involve known and unknown risk. No assurance  can be given that any events anticipated by the forward-looking statements  will occur. Actual results and future events could differ materially from  those expressed in, or implied by, the forward-looking statements. As a  result, readers are cautioned not to place undue reliance on these  forward-looking statements. These forward-looking statements are made as at  the date of this news release. SRC does not undertake any obligation to  publicly update or revise any of these forward-looking statements, except as  required by applicable securities laws.          

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